Expat Chit Chat

Govt should provide more incentives to airlines

Shirajiv SIRIMANE

Global airline industry is facing a huge problem due to escalating fuel costs and some airlines are already folding up. The Government can help the airlines to cushion out high fuel costs by offering concessions at airports, Country Manager Sri Lanka and Maldives Cathay Pacific Airways Limited Julian Lyden told Daily News Expat Chit Chat.

“Sri Lanka where ground handling charges are said to be the highest in the region, also should try to assist the airlines by reviewing its ground handling charges and offering concessions to airlines,” he said.

“The Government must also remember that foreign airlines not only provides connectivity but also carries cargo, flies in investors and tourists which help the economy. Therefore the Government should provide more benefits to airlines,” Lyden added.

Cathay Pacific Airways Limited is the largest airline and the flag carrier of Hong Kong. Based at Hong Kong International Airport, the airline’s operations include scheduled passenger and cargo services to over 120 destinations worldwide.

Cathay Pacific is one of the only six airlines worldwide to carry a five-star rating from Skytrax. Cathay was named “Airline of the Year” in 2003 and 2005 by Skytrax and in 2006 by Air Transport World and OAG.

Last year there were 131,000 aircraft departures and the length of scheduled route network was 442,000 km. It carried 23,253,000 passengers and 1,642,000 tonnes of Cargo. With a turnover of HK$ 75,358 million the airline’s attributed profit in 2007 was HK$ 7,023 million.

Cathay Pacific and its subsidiaries employ over 19,837 staff in Hong Kong. Cathay and its subsidiaries employ close to 27,031 people worldwide. More than 12,246 Cathay Pacific staff are Hong Kong-based and a further 7,591 work for local subsidiaries, making the Cathay Pacific Group one of Hong Kong’s biggest employers.

Flanked by two senior staff members of the local office, Lyden summarised the Cathay’s flight from history to the twenty first century.

Q: How do you review operations in Sri Lanka?

Cathay had being partnering Sri Lanka for a long period and from three weekly flights per week in 1993 we have increased frequency to daily to Hong Kong.

We also operate thrice a week to Bangkok to cater to the growing leisure traffic and four times a week to Singapore mainly targeting the business travelers and passengers going beyond. This is because we have faith in the destination and we strongly believe that Colombo has more potential.

The airline also launched Asia Miles promotion, which is gaining popularity. Due to this, long haul passengers flying to countries like Canada or USA would get free miles to either Singapore or Bangkok. Asia Miles has over 300 partners in nine categories, including 19 airline partners, and more than 2.9 million members.

Members can earn and redeem Asia Miles to over 950 destinations worldwide. In 1981, Cathay Pacific began a dedicated cargo services and now operates cargo freight flights to 31 destinations around the world.

The airline also offer the quickest turn around times for destinations in Europe, US, Canada and Australia while offering several packages.

Q: Does the airline assist in Hong Kong visa process?

Yes this is an area we have addressed and we also process Visas to China.

Q: How do you see the local travel agents?

Sri Lanka is blessed with very smart travel agents who are adding value fast to their products to attract passengers.

In Europe, US and in many Asian countries airlines have decided to do away with the agents commission which was the bread winner for the airline ticketing agents.

In Sri Lanka too the agent’s commission was reduced from nine per cent to seven per cent and there is a speculation that this would be further reduced.

Speculation is also there that the agents would only be left with a service fee. The increasing budget airlines, e- ticketing and more people booking their flights from the net too are shirking the agents business.

In this backdrop Lankan travel agents are reading the future and becoming very innovative. Yesterday a travel agent was only issuing a ticket and today there is value addition. Some even open their offices during the weekends while some have gone 24 hours in a bid to retain their customers and attract new passengers.

Travel agents are a vital part of the airline industry and we believe that they should be nursed and protected.

Q: How do you see the adaptation of e-tickets in Sri Lanka?

I think it’s working very well and the country is doing well in this area.

Q: How is the Sri Lankan staff?

The problem with Sri Lankan staff is that they are too good. Airline staff can find employment anywhere in the world and this is the reason for brain drain. The authorities should soon try to devise a mechanism to keep them in Sri Lanka.

Q: How do you see the Sri Lankan economy?

It is growing. However the settlement to the current conflict would bring in many economic benefits and there would be a surge of tourist arrival to this lovely country.

Q: How do you see the emerging competition from Low Cost carriers?

Low cost carriers cater to a different segment. As far as Cathay is concerned they are not a threat to us as they do not eat in to our market segment. We are a full service airline providing all the comforts a passenger could imagine whether he or she is flying economy business or first class.

Q: How do you see the growth of the Indian aviation industry?

It’s growing very fast. We are really excited about it as the potential is huge. Cathay is always looking at new destinations. Our focus in now on new Indian destinations.

Q: What is your favorite location in Sri Lanka?

Well I love the ruins and the historical architecture in Anuradhapura. As I was in Papua New Guinea I am somewhat used to Sri Lankan food and I am really fascinated about the dish that is made with the biggest noise, Kottu.